GOLD FUTURES SEEN TRADING IN TIGHT RANGE NEXT WEEK

KUALA LUMPUR, Dec 7 (Bernama) -- The gold futures contract on Bursa Malaysia Derivatives is expected to trade in a tight range next week.

SPI Asset Management managing director Stephen Innes said due to the absence of significant US economic catalysts, gold may remain trapped within its current range of US$2,625 to US$2,675 per troy ounce next week, awaiting a definitive market catalyst.

“A weaker-than-expected jobs print could rekindle hopes for a US rate cut in January, potentially giving gold a much-needed boost,” he told Bernama. 

Innes said the lustre of gold has notably dimmed as fast-money speculators have shifted their focus to the more volatile crypto markets.

“The traditional pillars that once supported gold—aggressive Federal Reserve rate cuts, a weakening U.S. dollar, recession fears, and its status as a geopolitical hedge—have all but evaporated in the wake of a relatively smooth transition period under incoming Trump administration. The calming of key indices like the VIX and MOVE has effectively capped any potential rally in gold prices,” he said.

For the week just ended, gold futures showed mixed trends, fluctuating between mirroring the US Comex momentum and subdued demand.

On a Friday-to-Friday basis, the spot-month December 2024 contract ended the week lower at US$2,653.8 per troy ounce from US$2,659.30 per troy ounce last week, but the January 2025 contract went up to US$2,666.0 per troy ounce from US$2,659.30.

The February 2025, March 2025, April 2025 and May 2025 notes also settled higher at US$2,678.10 per troy ounce from US$2,659.30 per troy ounce last week.

Volume shed to 69 lots from 127 lots last week, while open interest climbed to 23 contracts from 22 contracts previously.

According to the London Bullion Market Association’s afternoon fix on Dec 5, the price of physical gold stood at US$2,640.15 per troy ounce.

-- BERNAMA